Gold reaches new high

Gold prices soar Rs350 to reach a fresh peak at Rs43,350 per tola (11.7 grams).

KARACHI: Gold prices soared Rs350 to reach a fresh peak at Rs43,350 per tola (11.7 grams) on Wednesday. The precious yellow metal has been spiralling due to high international rates and demand in both local and foreign bullion markets.

Ten-gram gold prices rose by Rs300 to close at Rs37,157. President of All Sindh Sarraf Jewellers Association, Haroon Rashid Chand, said that gold was mainly influenced by global market rates, but interest amongst local investors also pushed the prices up.

“Local investors are also demanding gold now, since prices are expected to rise further,” Chand said. He explained that while consumers were staying away from bullion markets as they had limited purchasing power, investors were making purchases of gold bars.

The gold expert said that prices are expected to cross the Rs45,000 per tola mark soon, and hence advised people looking to make a profit “to buy”, while advising the consumers to “wait and see when the rally ends”.

Citing other reasons for the rise in gold value, Chand said that precious commodities were highly in demand and silver had also broken all earlier records. He said the reason for the demand is an unstable US economy and turmoil in global markets, which led to gold being a favourite for safe-haven investment worldwide.

Chand further said that the commencement of Diwali season in the sub-continent also helped push the value of gold towards an all-time high.

In the international bullion market, gold has created a stir, reaching $1,350 an ounce on Wednesday. Gold set new all-time highs in Canadian dollar and Indian rupee while hitting three-month highs in Japanese yen and pound sterling, according to thebulliondesk.com.

Published in The Express Tribune, October 7^th, 2010.